Amsterdam Court of Appeal Decision on Tax Rate for Unlicensed Medicines – Neutrality Principle upheld

• The case involves the application of a reduced VAT rate for the sale of certain products
• The products in question do not have a marketing authorization or parallel trade authorization as required by the Medicines Act
• The taxpayer argues that the products should be subject to the reduced VAT rate, but the tax authority disagrees
• The High Court awaits a ruling from the Supreme Court on a similar case involving a product used for skin conditions
• The Supreme Court ruled that products without a marketing authorization should be subject to the standard VAT rate, not the reduced rate
• The distinction between medicines and medical devices is significant for consumers and justifies different tax treatment

Source: uitspraken.rechtspraak.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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